Credit to the Fed. They are playing their hand well. They have a losing hand. No chance to win - except for bluff and cheating. And they are doing it well.
Just think how this will work.
The taper will happen (the 10 bill a month), but they will now just 'talk' about 'more taper'. So, in March / April they will say 'the economy is going great, because you see we tapered already this year AND we 'plan' to taper more... and the economy is still going OK'.
So, with their 'tiny' bluff (10 bill) they will get the main stream media to talk about that - and upcoming planned taper - ad nauseum.
Note, though, with the bond rollovers (buying back expiring treasuries from earlier purchases) coming up in 2014... AND , as well, they actually 'reinvest' the interest they 'get' from the US govt into more bond purchases... are they at 3 Trillion bond holdings... at 3%, they receive from the govt $100 billion in interest... and, they reinvest that (buy more bonds). So, in fact, in 2014 we have (note the word FACT! - unarguable)
1) new bond purchases 'tapered' to 75 bill a month (from 85)
2) reinvest earned interest into new bonds... 10 bill a month MORE than prev years
3) repurchase of expired bonds they bought 3 and 4 and 5 years ago... I don't know the number
So, in FACT, the Feb buying US treasuries will INCREASE in 2014 from 2013. Yet, they will bluff the taper.
They are playing a good, good game... with only bluff and cheat. And the average punter cannot connect the dots. The dots are there... and Fed says 'we will connect for you: the dots say ALL IS OK and economy ROBUST and you can trust us Banksters'.
But if YOU connect the dots, you will see a different picture. But like the Matrix or Oblivion... dare we ask, 'what is reality?' Is reality just what you 'THINK' is reality.
Credit to the Fed. They are playing their hand well. They have a...
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